Credit 101 for the small business owner!

Getting a loan while you are self-employed
Getting and keeping credit is enough of a problem all by itself, but being self-employed and trying to obtain loans is a whole new ballgame. It is a good bit harder for a person who is self-employed to obtain credit for anything than it is for a person who has taxes taken out of their check every week.
As you are probably aware, all places require you to prove that you actually have income before they will lend you money, but some places require different kinds of proof than others do. Depending on whether you are dealing with a large company that runs applications through a computer or a company where you can actually speak to the person who reviews your application, you may have to have anything from tax returns to paycheck stubs or even down to just a letter from your employer.
When dealing with small companies, you may be able to get away with just a record of your income that you have kept personally for the past year or more, but when dealing with large companies that approve and reject applications by computer, you will likely need the past two years’ tax returns. If you do not have these, you are likely to have problems getting the loan you are after.
Either way, a secured personal loan is much easier to obtain than an unsecured personal loan. As a self-employed person, it is very hard to obtain an unsecured loan from a large company if you are within the first year of your business. It is often easier to go with a smaller company where you can talk to a loan officer one on one and explain your situation. If you can make the person you are dealing with care about you, they will often do the best they can to get the money you need. The most you will typically get when dealing with large companies such as Capital One or HSBC is a somewhat nameless person that likely lives in a foreign country reciting company rules and regulations with next to no room to maneuver to help you out, no matter what your situation is. Trying to make these people care about you is usually fruitless, so if you are newly self-employed and need a loan of any kind, try to deal locally with an actual person. This is the easiest way to get the funds you need, whether it is for a vehicle, equipment, or anything else you might want a loan for.

Fed Rate Cut x 2=darn good time to refi!

Source: BaltimoreSun.com
If you can refinance and you can find a flat fee mortgage then you may want to strongly consider the refinance option.
Refinancing needsWith mortgage rates falling, many consumers are considering refinancing their loans. But the requirements are different in this post-credit crunch. Some things you’ll need:
• Good credit, with a minimum score in the mid-600s• No late payments on credit cards, mortgages or installment plans in the past two to three years• Home equity• Proof of income
“Rates for 30-year fixed mortgages hovered around 5.5 percent yesterday, with some dipping into the 5.25 percent range early in the day, according to area brokers. That’s just a hair above the record lows recorded in June 2003, when the housing market was flourishing.
When the Fed cut a key interest rate by three-quarters of a percentage point Tuesday, it had no direct effect on fixed mortgages. But it got consumers’ attention. That, coupled with the lower mortgage rates, which have been driven down by their connection to 10-year Treasury bonds, sent homeowners on the hunt for deals.”

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